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Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following
Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2.
(amounts in millions) | Year 1 | Year 2 |
---|---|---|
Balance sheet | ||
Cash and cash equivalents | $6,680 | $6,050 |
Marketable securities | 3,794 | 2,749 |
Accounts receivable (net) | 4,373 | 3,378 |
Total current assets | 17,801 | 15,283 |
Total assets | 33,435 | 31,138 |
Current liabilities | 9,843 | 6,890 |
Current portion of long-term debt | 1,883 | 231 |
Long-term debt | 11,463 | 11,364 |
Shareholders' equity | 10,202 | 11,208 |
Income statement | ||
Interest expense | $310 | $349 |
Net income before taxes | 4,718 | 4,816 |
Round all answers to two decimal places.
Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%).
Year 1 | Year 2 | |||
---|---|---|---|---|
Liquidity | ||||
Cash and marketable securities to total assets | % | % | ||
Quick ratio | ||||
Current ratio | ||||
Solvency | ||||
Long-term debt to total assets | % | % | ||
Long-term debt to shareholders' equity | ||||
Interest coverage ratio |
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